As October approaches, interaction between banks and supervisors to validate that task will intensify, and during September/October entities will be given “a review of the partial and preliminary AQR and stress test results… while not addressing the full final impact on banks’ capital ratios”.
Results will presumably be ready for the second half of October and banks will know those results “very close to the time of public disclosure.”, according to the ECB. Some media are reporting that lenders will receive the results on a Friday, and they will become public on the following Monday.
“Banks know what we expect and have advance notice to prepare for the outcome of the comprehensive assessment. Much work has already been undertaken to repair banks’ balance sheets and, encouragingly, this work is continuing,” Vice-President of the ECB Vitor Constancio said.
Entities will then have two weeks to submit plans for obtaining capital from the ECB, and 6 months for the necessary capital increases to cover deficiencies according to the “base scenario” parameters of the AQR. Also, 9 months to solve the problems of capital showing the “adverse scenario”.